common man (ER) 13 November 2009

Misuse of SARFAESI ACT

Hi,
Good Evening.
I need a help very urgently.
My friend is unable to pay his home loan (principle and int) of 33L of which outstanding due is 2.8L (less than 20%) of the outstanding.
Bank is threatening t use SARFAESI act and not hearing anything regarding the reschedule of the loan. He lost his job due to layoff and currently surviving on his savings.
Meanwhile he vaccated the house and let it for lease with which he was planning to pay the EMI and the overdue. But recovery people went to the house and bullied, and harrased the tenants because of which they vaccated. He lost the money that they provided as well.
Inspite of asking many times to reschedule the loan and reduce the EMI bank people never bother. They are only interested in repocessing the house.
Is there any way to stop the repocession or the sale of the property by the bank?

Please advice.

Thanks,
Common man.

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2 Replies

Kiran Kumar (Lawyer) 13 November 2009

i ve replied to it pls check.

sukhbir singh (Businessman) 28 March 2010

Dear Kiran Kumar,

The question is whether Bank can issue notice u/s 13(2) where the defaulted amount is less than 20%, as Sarfasai Act gives exception to cases where outstanding is less than 20% and cannot be proceeded under the Act. Can you reply to this question.